MCCU Annual Report - page 14

MANCHESTER CO-OPERATIVE CREDIT UNION
ANNUAL REPORT 2013
14
• There was a modest decline of 165 or 2% in the number of loans disbursed during
the year. There was however a sizable $302 million or 41% increase in value of loans
paid out. The amount moved from $746 million in 2011 to $1,049 million at the end
of the 2012 financial year. This resulted in an overall 29% growth in the net loan
portfolio that stood at $1,571 million at the end of the year.
• From the top five categories of loans disbursed during the year, home improvement
loans accounted for the highest amount with $225 million disbursed in that category.
This was a sizable 54% increase when compared to the $146 million paid out in 2011.
There were also strong growths in the education expense and business investment
categories that saw increases of just under 50% respectively.
• The
Commercial Auto Business Solutions
(CABS) loan product was developed
especially for operators of public transport and other commercial vehicles. Members
were able to apply for loans ranging from $800,000 to $2,000,000 to purchase
motor vehicles up to 8 years old with a maximum repayment period of 5 years.
• The
Monimax
and
Tuition Plus
loans were introduced with the aim of providing
our members more access to unsecured loans. These loans enabled members to
apply for a maximum of $500,000 above shares for up to four (4) years at attractive
interest rates. The Credit Union received overwhelming responses to these products
as the pool of funds allocated for this purpose was fully exhausted.
• Several amendments were made to existing loan products during the year. These
included the extension of repayment terms for real estate loans from 15 years to 20
years and the increasing of the amounts accessible under this category at reduced
interest rates and lower share requirements. The terms of loans secured by motor
vehicles were also extended by up to two (2) years based on the age of the vehicle
pledged as collateral.
Amendments were also made to the various cash secured loans in an effort to provide
more attractive incentive for members to borrow against their savings as opposed
to making withdrawals.
• The Credit Union took steps to improve the loan administration process during the
year. In this regard, the loan approval limit for the In-house Committee was increased.
This, along with the more efficient use of technology and the implementation of other
initiatives resulted in a reduction in the loan turnaround time.
• The number of waivers granted for loans was ten (10) during 2012 for the following
reasons:
a. Loan Term & Debt Service Ratio
b. Share Requirement
c. Length of Employment
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